Indian Economy and Issues Relating to Planning, Mobilization, of Resources, Growth, Development and Employment.



Recently, India Innovation Index Report 2020 was released by NITI Aayogin whichKarnataka retained its top position in the major States category


  • NITI (National In stitution for Transforming India) Ayogwith theInstitute for Competitiveness.
  • The index has b een developed on the lines of the Global Innovation Index(GII), to ameliorate the innovation ecosystem of Indian states and UnionTerritories (UTs) and to design policies to drive innovation across regions.
  • The index goes beyond traditional approaches by considering the bestparameters in measuring innovation such as patents per million ofpopulation, publication in scientific journals, percentage of GDPspending on research.
  • It also adds parameters that are specific to the Indian economy (eg. Demographicdividend), to give it a more holistic coverage.

The indicators that the survey uses includes the level and quality of education onparameters such as:

  •  Number of P hD students and knowledge-intensive employment
  • Enrolment in engineering and technology and number of highlyskilled professionals.
  • Investment in R&D and number of patents and trademark applicationsfiled.Internet subscribers.
  • FDI inflows, business environment and safety and legal environment.

Categories: The Innovation Index is divided into three categories—major states,Union Territories, and hill and North East states.

Major States:

Top States:

  1. Karnataka topped with a score of 42.5 for the second yearrunning.
  2. The state’s success has been attributed to a high number of venturecapital deals, registered GIs and ICT exports, and high FDI inflow.
  3. Four southern states – Karnataka, Tamil Nadu, Telangana andKerala —occupy the top positions on the index,apart fromMaharashtra which ranked second.

Bottom States:

  1. Jharkhand, Chhattisgarh and Bihar scored the lowest onthe index, which put them at the bottom in the “major States” category.
  2. Bihar raked last with 14.5 points.

Hill and North-East States:

  • Himachal Pradesh topped the rankings of hill and North-East states,followed by Uttarakhand, Manipur and Sikkim.

Union territories/Small States:

  1. Delhi has scored the highest on the index in the country with a score of46.6, while Lakshadweep has the lowest score at 11.7.
  2. Delhi recorded the highest number of trademark and patentapplications, along with the establishment of new start-ups andcompanies in the last financial year.

Investing More in Research:

  • India needs to increase its spending on R&Dwhich is around 6-0.7% of its GDP,way below the expenditure level ofcountries like Israel (4.3%), South Korea (4.2%), the US (2.8%) and China (2.1%).
  • Increased spending on research and development with greater collaborationbetween the industry and educational institutions may help to enhanceinnovation capability.
  • It could broaden and improve the capability of top rung educationalinstitutions in the country to produce greater innovation outputs.



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